Plus, I think I could get closer to $1.5 today but I am still waiting for the new appraisals to be done.If we sold them, I have considered becoming a hard money lender to see if I like that aspect of real estate.

It can definately give you an inside track on getting the first chance on some decent properties.

The other aspect is while some deductions and strategies might be legal they GREATLY increase your chance of an audit.If the payoff is small then risking an increased audit for the small gain might not be worth it.You need to have this discussion with your tax professional.no legal advice

Your gross rent would be upwards of $2000 per month and your net income would be in excess of $1000 per month, perhaps somewhat more early on before maintenance catches up (initial investment assumes a good rehab.).You would have the cash to pay back the loan if you wanted to rather quickly or you could re invest in similar properties as you accumulated more capital.I am basing my expectations on the 2% 50% guide found on BP and have been exceeding these numbers at least in the short run.these properties are in C areas which I define as lower income working class areas.

If you define a A class neighborhood as top school districts, this will be very hard to find in Atlanta.

This would help us nail down one aspect of the equation.

One way to increase the cap is to improve the property, including the image of the property, in a stagnet market, that's usually the only alternative, change the use, the market, population served and better define the area you are in.

You'll end up paying about 10% to sell the place leaving you cash out in the $72 - 81k range... leaving you $5 - 14k profit... that doesn't include any holding costs... seems pretty tight.Your other strategy is to invest $19k ($12k down + 7k rehab) for what amounts to $70 a month in cash flow per your numbers above (used 50% GOI - Mortgage defined as $500 - $170 in taxes)

When purchasing a MFH to B&H, to me there are several main aspects:-- Getting property in rentable shape/rehab-- Tenant Selection & Management-- Financial ManagementAs I just completed purchasing a 6 family 2 days ago that is already rented and needs little work, my attention is focused on Financial Management.

For instance, if your father is responsible for operation of the company but due to his illness does not complete his defined duties it might be possible to pierce the corporate veil and go after him personally.